In the not so distant past, living a dog’s life was not a comfortable one. Time has changed the life of a dog or other family pet quite dramatically. Today, a family pet can get treatments that a few years ago were reserved for humans only. Alternative therapies, such as acupuncture, massage or high end diagnostics, such as MRIs have become common procedures when talking about pet healthcare. Today’s pet owners demand the same treatment options for their pets as they can obtain for themselves.
Americans clearly enjoy having a pet nearby since 63% of US citizens have a companion animal. Out of that population segment, more than 80% consider their pets as family members and as such it is treated as one. Americans now spend nearly $41 billion a year on their pets and this amount is expected to rise to $52 billion by 2009. This includes food, veterinary care, supplies and other pet services. Veterinary care is one of the largest expenditures of pet owners accounting for $18 billion a year, according to the American Veterinary Association. Spending continues to grow due to vet costs, which are growing at a 5.5% rate annually.
Emerging vet medicine techniques and rising veterinary costs make pet health insurance an attractive alternative to offset the cost of increased pet care. Currently the US pet insurance market is undeveloped and largely untapped. Less than 2% of all American dog and cat owners insure their pets, compared to 18% in UK and 48% in Sweden, where pet insurance market accounts for $600 million and $70 million, respectively. The UK market is estimated to be one tenth the size of potential American one, exposing a potential $6 billion industry. The American Pet Products Manufacturers Association expects pet insurance premiums to exceed $500 million by 2010.
The biggest challenges associated with the US pet insurance have been the incapacity of the insurance companies to work as both an underwriting insurer and to implement cost-effective marketing. However, these issues were overcome by Vsurance Inc (OTCBB: VSUR)., due to its unique business model that allows the company to act both as a marketing agency and underwriting insurer. Being one of the leading providers of pet health information services through its online portals, Vsurance has created a database of names and e-mail addresses that later could turn into potential customers for its pet insurance policies and other pet-related products. In an education driven market, the company’s position makes it possible to take advantage of all marketing opportunities. Acting as an innovative company, Vsurance has implemented Get HIP Pet Health Insurance program, which at this point is the only US pet insurance product that offers “lifetime coverage”. As the market grows, Vsurance’s offering of “lifetime coverage” may prove to be a key advantage for Vsurance to establish market domination. Vsurance’s emergence into the pet insurance market positions the company to take full advantage of the current economic climate revolving around the ‘pet economy.’ Consumers demand options for the care of their pets, and Vsurance is looking to fill that void.
About Vsurance, Inc
Vsurance is a leading provider of pet health insurance and other pet health-related services in the United States. Programs include its Get HIP(TM) Pet Health Insurance for Pets program, the most comprehensive full-coverage pet health insurance plan in the industry. Vsurance provides pet and horse resource centers through the Internet including VetpetMD(TM), Spot the Pet(TM), and Purrfect Pet Club(TM). Programs include life, liability, and health insurance for pets, horses, and other companion animals.
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